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Your employer has anticipated needing $60,000 in two and a half years to finance the purchase of a new lathe. If they anticipate making a single lump sum investment today into a savings account that will return 12% interest compounded continuously, how much money do they need to invest?
Describe each of the following economic functions of money and provide an example of each: (1) medium of exchange; (2) standard of value; and (3) store of value.
California is a large producer of strawberries. Oh No! There is a killer frost that kills half of the crop! (A)How has this affected supply or demand of strawberries? (B)What has happened to the price of strawberries? Please justify your answer by gr..
Most large airlines operate networks, hub-and-spoke systems, which connect many spoke cities (or nodes) with flights to and from a hub airport. How can a network airline profitably serve smaller cities than a low-cost-airline?
Three Guys Named Moe, a moving company in Econopolis, is contemplating a price hike. Right now, they charge $20 per hour, but Moe #1 thinks they could get $30. Moe #2 disagrees, saying it will hurt the business. Should they do as Moe#1 suggests and r..
q. a firm in a purely competitive business is currently producing a 1000 unitday at a total cost of 450. if the firm
Many police officer positions being advertised today require the applicant to have a college degree even though the tasks of a police officer rarely call upon college course material. From an economics perspective, why don't police departments increa..
Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose that an individual's inverse demand for wireless services in the greater Boston area is estimated to be P = 100 − 33Q and ..
A consumer may consume food x and hours of leisure time h. The price of one unit of food is $1. Initially, the consumer has no money and 24 hours of spare time that she may devote either to work, or to leisure. The consumer earns wage rate s per hour..
The bank and pays interest at the market interest rate of 4 percent. Is it correct to say that the cost to Mary of living in her house is less than the cost to John.
Depreciable residential rental real property has been purchased for $70,000 and put into service during the third month of the taxpayer's tax year. For the applicable 27.5 year depresiation life. How many months of depreciation should be generated fo..
Given an annual annuity of $30 for years 1 through 3 and a deferred annual annuity of $100 for years 4 through 7 and an interest of 10%/year, what is the present worth? Provide your cash flow diagram.
What is the cost-effective pollution level for each plant if total pollution must equal 100? Suppose the city government knows marginal reduction costs at the two plants. In this case, could the city obtain cost-effective pollution reduction using a ..
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